Turkey's First Climate Law and Its Implications

The Environmental Commission of the Turkish Grand National Assembly (TBMM) has approved Turkey's first "Climate Law Proposal." This law establishes the legal framework for combating climate change, aiming for net-zero emissions. But what changes does this new law bring for emissions management, carbon markets, and private sector obligations in Turkey?

What is the Climate Law?

The Climate Law is one of the most significant legal regulations Turkey is implementing as part of its adaptation to the Paris Agreement. It promotes the reduction of greenhouse gas emissions and creates a legal foundation for ecological transformation. Additionally, it envisions major changes in industries such as energy, transportation, and manufacturing to achieve the net-zero target by 2053.

The law sets national and sectoral emission reduction targets. To achieve these goals, economic and technical support will be provided. Furthermore, the use of environmentally friendly technologies will be encouraged, and green financing models will be developed.

Emissions Trading System (ETS) and Carbon Markets

With the new law, Turkey is introducing an Emissions Trading System (ETS). ETS sets a cap on carbon emissions. Companies that exceed this limit must purchase additional emission allowances, thereby increasing the incentive for high-emission sectors to reduce their environmental impact.

The introduction of ETS will accelerate Turkey’s integration into international carbon markets. The goal is to improve carbon pricing policies and align with the Carbon Border Adjustment Mechanism (CBAM) of the European Union. This will encourage investments in eco-friendly technologies and sustainable projects.

Voluntary carbon markets also play a crucial role in the new law. Companies can invest in emission reduction projects as part of their climate neutrality goals. The growing trade of carbon credits will support large-scale projects in renewable energy, afforestation, and sustainable agriculture.

Climate Justice and Obligations for the Public and Private Sectors

The new law is based on the principle of climate justice and defines different obligations for the public and private sectors:

• Public Institutions: Responsible for developing and implementing new policies in line with sustainability principles.
• Private Sector: Large companies must report their carbon emissions and develop reduction strategies. They must comply with Environmental, Social, and Governance (ESG) criteria.
• Municipalities: Cities are encouraged to implement green infrastructure projects and energy efficiency measures. Smart city applications, renewable energy systems, and nature-based solutions will be prioritized.
• Citizens: Various awareness campaigns and incentive mechanisms will be introduced to promote a climate-friendly lifestyle.

Implementation and Monitoring Process

The implementation and monitoring of the Climate Law will be overseen by the Presidency of Climate Change. This institution will ensure that businesses and public entities meet their obligations and guide the adaptation processes.

Additionally, financial incentives and subsidies will be provided to support businesses and public institutions in their green transformation. A Climate Fund will be established to finance sustainable projects and promote the ecological economy.

Impacts of the New Law

With the enactment of this law:

• Turkey will take concrete steps toward net-zero emissions.
• The industrial sector will undergo a transformation through carbon taxes and emission reduction obligations.
• Investments in renewable energy will increase, with more funding directed toward green projects.
• Turkey’s integration into international carbon markets will be facilitated, providing trade advantages.
• Green jobs will grow, creating new career opportunities in the climate-friendly economy.
• Companies will bear greater responsibility in sustainability reporting and, by complying with ESG criteria, enhance their competitiveness in international markets.

Conclusion

Turkey’s first Climate Law is a crucial step toward achieving national sustainability goals. The new regulations on emissions management, carbon markets, and climate justice are expected to raise environmental awareness and bring significant changes to the industrial and energy sectors. In the coming years, the effectiveness of its implementation and its real-world impact will be key. Additionally, continuous alignment with international climate policies will be necessary to keep Turkey’s roadmap toward a climate-neutral economy up to date.


Source: AA - Turkey's First Climate Law Proposal Approved by the Parliamentary Environment Commission